76.6k views
4 votes
For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $349,600. The variable cost per unit is $4.56. What price does Jefferson charge per unit? Note: Round your answer to the nearest cent.

1 Answer

4 votes

Answer:

$7.60 per unit

Step-by-step explanation:

Given that,

Break-even units = 115,000

Fixed cost = $349,600

Variable cost per unit = $4.56

Contribution margin per unit:

= Fixed cost ÷ Break-even unit

= $349,600 ÷ 115,000

= $3.04

Contribution margin per unit = Selling price per unit - Variable cost per unit

$3.04 = Selling price per unit - $4.56

$3.04 + $4.56 = Selling price per unit

$7.60 = Selling price per unit

User Matias Vad
by
7.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories